Consumers are being forced to reduce their spending on food and fuel and to
borrow money in order to stay solvent.

Eleven million Britons are struggling to break even at the end of the month, leaving nothing left for emergencies or luxuries. Consumers are being forced to reduce their spending on food and fuel and to borrow money in order to stay solvent.

According to research by uSwitch.com, 14pc of consumers say that they are worse off now than they were 12 months ago. One in three has suffered a pay freeze over the last 12 months and a further 8pc have had their pay cut, making balancing the books particularly tough this year.

As a result, one in four Britons only just ‘breaks even’ at the end of every month. To make ends meet, 39pc have cut down on essentials, with 28pc cutting back on food and 19pc spending less on fuel.

On top of cutting essential spending, more than a fifth now take a packed lunch to work and 13pc have taken on extra work to boost their income.

For others, the financial landscape is considerably more rocky, with 7pc of consumers finding themselves in the red, while more than one in three use overdrafts and 23pc use savings to stay solvent. Indeed, Britons have borrowed an average of £1,950 on top of any mortgage costs this year – but only a quarter have paid it all back.

Michael Ossei of uSwitch.com said: “When it comes to balancing the books, we are treading a fine line. It will only take an unexpected price rise or emergency at home to push us over the edge and into the debt spiral. For many consumers, everything is shooting up except their income.”